Northern Lebanon SD officials outline plan to borrow about $9M for secondary school work

Brad, a district financial adviser, told the Northern Lebanon School District Board of Directors on Feb. 4 that the district’s next bond sale could supply about $9 million to $9.5 million for the high school project.

Brad said municipal markets remain receptive and that the district’s expected borrowing would be amortized over roughly a 22-year schedule. “I would expect that you would receive some good interest rates on your next transaction,” he said.

The advisory presentation laid out a draw schedule showing estimated uses and sources of funds, the district’s current principal-and-interest profile, and a borrowing-capacity calculation based on the district’s audited financials and the Pennsylvania Debt Act. The adviser said call dates on existing bonds begin in about four to five years and that refinancing opportunities will be evaluated when they would produce savings.

Why this matters: The financing would fill the remaining budget gap for secondary-school construction and affects future debt service and the district’s long-term budget planning. The presentation estimated annual debt-service payments would settle near $6.5 million once the new borrowing and existing debt are wrapped together.

Key details from the presentation: - Estimated new borrowing: $9,000,000–$9,500,000 (range provided by presenter; exact amount depends on final scope and market conditions). - Expected amortization: roughly 22 years. - Estimated steady-state debt service: about $6.5 million (presenter estimate). - Timing: board action on a parameters resolution is scheduled for the March 11 meeting; the adviser targeted a bond sale in late March with proceeds available in April or May.

Board process and next steps: The board previously authorized the district to work with Stockton Leader to prepare the transaction; the adviser said that authorization was already in place. The board must adopt a parameters resolution at a future meeting that will set the legal and structural limits of the sale and ensure compliance with state and federal requirements.

Administration said final borrowing capacity is calculated from a three‑year average of revenues (excluding one‑time federal ESSER funds) multiplied by the statutory factor; that calculation produced the district’s present capacity and a projected increase next fiscal year that could create roughly an additional $7.5 million of capacity (presenter projection).

The board did not vote on the borrowing at the Feb. 4 meeting. The adviser and district staff encouraged board members to raise questions in advance and said the administration will return with the parameters resolution in March.

For now, district officials asked the board to treat the figures as estimates that can change based on final project spending, market pricing and the exact structure of the issuance.